What A solution is a product, service, program, policy, or initiative that enables the private sector to create societal good and measurable results across the most important challenges relating to the New Economy editorial pillars: trade, technology, climate, finance and capital markets, inclusion, urbanization, and global governance.

Who Solutions arise from collaboration. Bloomberg creates powerful coalitions of the world’s top leaders across industries, functions, and regions. Although solutions are led by the private sector, Bloomberg welcomes all leaders committed to fostering inclusive growth.

How Bloomberg advances solutions by launching pilot programs, forging partnerships, convening global coalitions, raising awareness for powerful ideas from around the world, and measuring and publicizing the results. Global Solution In 2019, we brought together leaders around the world to advance solutions launched at the inaugural 2018 New Economy Forum in Singapore. Sessions We hosted Solution Sessions with companies and organizations across London 19 industries, who together employ over 3.7M workers. Enable Sustainable Supply Chains

Mexico City New York City Develop a Social Hire and Integrate Bangkok Contract for Businesses Refugees Support Refugees

in the New Economy Apply AI Responsibly San Francisco Singapore Apply AI Responsibly Prepare Workers for the New Economy

4 5 Bloomberg is proud to collaborate 2030Vision Planet with innovative companies and 3M Salesforce organizations on New Economy Solutions. We could not drive Anheuser-Busch InBev GovLab at New York University Schneider Electric impact and results without the Anglo American Grand Royal Group Siam Cement Group organizations that helped Arm Greentech Capital SkillsFuture Singapore advance solutions in 2019. Asia Society GSMA Syngenta Bangkok Bank HSBC Talent Center Institute SC BT Hyundai Tata Sons CDP Internal Displacement Thai Bev Cargill Monitoring Centre Thai Wah CBRE KPMG The Border Consortium Chanel LEGO The Innovators Institute Coca-Cola Lennar International The Tent Partnership for Refugees Conicle LinkedIn UBS Credit Suisse Mastercard United Nations Disrupt Technology Ventures McKinsey & Company United Way Mexico Edelman Morgan Stanley Department for International EL Rothschild National Grid Development (UK) Enseña por Mexico National University of Singapore Vonder Ernst & Young New York City Economic Walmart Development Board (NYCEDC) Eurasia Group William Jackson Food Group Noble Intelligence (McKinsey) Facebook World Bank Group OpenDurian Fullerton Health Worldwide Generation PayPal Generation

6 7 Thank you to each individual, organization, and company that has engaged with us this year. We look forward to continuing to work together to meaningfully drive progress and measurable results to create a stronger, more inclusive global economy.

We encourage delegates to get involved with our ongoing initiatives in 2020 and beyond. In the following pages you will see highlights and updates from the inaugural year of New Economy Solutions and ways that your company can get involved.

8 9 Solution: Hire and integrate refugees

Solution Challenge Europe and North America, where many refugees resettle, have struggled to cope. The largest refugee crisis in history Job opportunities are inadequate for Hire and is growing. the scale of the displaced population, and many refugees have struggled integrate With resettlements across to learn new languages and leverage the Middle East, North their educational credentials in a foreign refugees Africa, and Latin America, context. Half of the world’s refugees One out of every have been displaced for more than How can the private sector two decades. play a role in alleviating 110 people The success or failure of refugee the worst refugee crisis has been displaced integration can have lasting from their home country. in history? consequences, affecting whether future generations reach their full potential or remain trapped in poverty. Political turmoil in Syria Beyond being a humanitarian imperative, and the Northern Triangle integrating refugees successfully would of Central America contribute to economic growth. Research has worsened, suggests that integrating refugees who driving millions have arrived in Europe between 2015 across borders. and 2018 would add at least 70 billion euros to annual GDP by 2025. [1] Given the scale of the challenge, In Thailand, 80,000 governments and non-profit people have resettled resettlement organizations cannot in sprawling camps along solve the problem alone. Corporate the border with Myanmar. leaders have an opportunity to join the global response by hiring and retraining refugees and expanding corporate diversity-and-inclusion programs to benefit displaced workers. How can we leverage the private sector to support a more stable and prosperous future for the world’s most vulnerable refugee populations?

[1] McKinsey Global Institute, “Europe’s Refugees: Refocusing on Integration,” Briefing Note, May 2018

10 New Economy Solutions Report 2019 11 Solution: Hire and integrate refugees

New Economy insights Key actions being pursued after In 2019, we collaborated with the Tent The private sector opportunity these sessions include: Partnership for Refugees, a nonprofit Bloomberg is elevating awareness of founded by Hamdi Ulukaya, the CEO There is more work to be done. Identifying factories with openings the refugee crisis to the C-suite inside of Chobani, to work to improve the Looking ahead, we will expand our that can be filled with refugees the world’s largest companies and lives and livelihoods of refugees. work to collaborate with more companies building coalitions of private sector Addressing skills and language Tent has engaged 130 organizations, to hire and integrate refugees into their leaders to act. gaps among current workforces including Unilever and Starbucks, to workforces. We will continue to address provide professional opportunities and this global crisis by encouraging the In 2019, Bloomberg New Economy Improving perceptions of refugee other services to 200,000 refugees, and private sector to commit to action. convened Solution Sessions with integration among employees supports companies in understanding We are looking for a commitment of senior leaders in Bangkok and Mexico and communicating the opportunities 15 companies to join the Tent Partnership City to find new ways of addressing Engaging employers in identifying for supporting refugees. in 2020, so that thousands of refugees regional refugee challenges. Participants skills gaps and future needs that can be filled with refugee talent can find employment and transition included large multinationals such as We are encouraged to know that to a more stable economic future. 3M, humanitarian assistance agencies Supporting refugees’ over a dozen companies from the such as The Border Consortium and psychosocial health New Economy community are part UNHCR, and training and reskilling of the Tent Partnership, including Citi, Please contact us at Applying lessons to the refugee companies such as Generation. Goldman Sachs, Google, IBM, IKEA, [email protected] crisis from other diversity and Inditex, KPMG, LinkedIn, Mastercard, to learn more about the business inclusion efforts McKinsey & Company, , PIMCO, case for integrating refugees and Salesforce. Each of these companies and to take advantage of the has identified unique opportunities in Tent Partnership’s research their workforces for refugees. In addition, and resources. Bloomberg itself is pleased to be joining the Tent Partnership, and is exploring how to support refugees through hiring and training and in our supply chain.

12 New Economy Solutions Report 2019 13 Solution: Apply data and AI for disaster resilience

Solution Challenge The exponential growth of data and advanced analytics has created In recent decades, natural disasters opportunities for improved disaster Apply data and have become more frequent and resilience and response. their effects more devastating. AI for disaster Beyond their short-term impact in the form of casualties, stronger natural resilience 3x as many natural disasters can have far-ranging disasters occurred consequences, affecting the air we How can the private sector in the 2000s breathe, the water we drink, the food we eat, and the places we inhabit. improve resilience and as in the 1980s relief in the face of climate Flooding can contaminate the water supply and destroy crops. Wildfires change-related disasters? can spread harmful smoke for Natural disasters now cause thousands of miles. We must be better prepared. $150 billion in Having to manage expensive recovery [2] annual damage. efforts that sometimes take years, national governments and NGOs are struggling to respond. [3] Leveraging Climate change is technology and talent, the private increasing the severity sector can do more to help. of droughts and fueling New data and advanced analytics more powerful storms. tools can meaningfully improve disaster resilience and response. For example, data from traffic, social media, telecommunications, and satellites can be applied to assess vulnerabilities before a disaster strikes and optimize resource allocation in its aftermath. Social media and telecommunications data can be used to make search-and-rescue operations faster and more efficient.

[2] “Steady Increase in Climate Related Natural Disasters,” Accuweather.com Nov. 2013 [3] “Improving disaster recovery: lessons learned in the United States,” Mckinsey.com. Jun. 2015

14 New Economy Solutions Report 2019 15 Solution: Apply data and AI for disaster resilience

Beyond sharing data, private companies New Economy insights Key barriers discussed include: The private sector opportunity can also deploy data scientists and other experts in times of need. These experts Recent efforts to apply data to disaster Slow and opaque communication When leading companies collaborate could, for instance, interpret data and response have made important strides, channels between private companies with governments and disaster resilience generate insights to help responders but full-scale solutions remain elusive. and disaster responders and relief organizations, we can dramatically reduce response times, optimize their relief efforts. This year, we worked with 2030Vision and Limited infrastructure to manage and improve effectiveness on the ground, McKinsey’s Noble Intelligence initiative, integrate data from different sources Given these challenges, how can we and leverage predictive capabilities which focuses on building AI use-cases for leverage private sector resources to A dearth of data science talent to better plan for disasters. social good, to understand how the private increase resilience and swift response to uncover useful insights in addressing natural disasters? sector can contribute to disaster resilience and relief efforts. 2030Vision is a group of While many organizations are working organizations working to use technology to to use data to address natural disasters, We invite companies to reach out achieve the UN Sustainable Development their efforts could be more coordinated. to determine how we can best Goals. 2030Vision partners include private To address these coordination challenges, collaborate around data, AI, data science and technology leaders, such two participants from these workshops predictive modeling, and data as Facebook, Microsoft, and McKinsey, are exploring the establishment of a science talent. Please reach out to as well as NGOs, such as UNICEF, that deal data-for-disasters initiative, which would [email protected] with disasters. connect experts and practitioners to to set up time with our data and climate change resilience experts Bloomberg, McKinsey, and 2030Vision streamline the application of data to get involved. held Solution Sessions in San Francisco and data science-driven insights from and New York, bringing together disparate sources. The initiative’s activities 2030Vision members and other relevant would include mapping private sector leaders, such as Salesforce, Walmart, resources to the needs of disaster the UN Office for the Coordination response organizations; facilitating of Humanitarian Affairs (OCHA), and data sharing through streamlined the Internal Displacement Monitoring access management and legal Centre (IDMC). processes; building AI and data science open-source tools to enable better insight Through these workshops and additional generation, providing expert data science working sessions, participants identified support for relief organizations; and a strong need for coordinated and rapid building an interpersonal network sharing of disaster-relevant data and among member organizations to the development of data science and streamline communication and AI tools that would enable useful foster innovative collaboration. insights from that data.

16 New Economy Solutions Report 2019 17 Solution: Enable sustainable supply chains

Solution Challenge Beyond its human impact, climate change is creating serious challenges for Climate change is undeniable. companies. Consumers, investors, and Enable governments are also pressuring the Our planet is getting warmer, private sector to act. To continue doing sustainable severe natural disasters occur more business, companies must meaningfully frequently, and due to rising sea improve their sustainability performance. supply chains levels, scientists predict that by Meaningful progress requires companies 2100 cities such as to go beyond their own operations. How can large buyers Dramatically curbing supplier support suppliers in Jakarta, Lagos, emissions is thus crucial to urgently reducing New Orleans, avoiding climate catastrophe. greenhouse emissions? and Bangkok will While major purchasers are uniquely be underwater. equipped to influence their suppliers’ business practices, progress has been far too slow. In a 2018 survey, only 35 percent In major industries, of companies disclosing information more than 80% on their supply chains even reported engaging with their suppliers on climate of greenhouse change. [4] Most companies do not gas emissions disclose comprehensive information are indirect. on their supply chains at all. They come from companies’ While change is difficult­­—requiring a supply chains rather than CEO-led sustainability agenda across all direct company operations. departments—bold leaders have shown that supply chain sustainability is possible. Innovative companies across a wide range of industries, from consumer goods to agriculture, are systematically identifying unsustainable practices and working with suppliers to address them. How can we get companies to put supply chain sustainability at the top of the agenda?

[4] McKinsey Global Institute, “Europe’s Refugees: Refocusing on Integration,” Briefing Note, May 2018

New Economy Solutions Report 2019 19 Solution: Enable sustainable supply chains

New Economy insights training and tools for suppliers and Sustainability incentives. The private sector opportunity collaborate with stakeholders. Walmart’s Creating financial incentives for Bloomberg collaborated with HSBC management has publicly committed In 2020, our goal is to translate these sustainability is crucial. Walmart works to identify and address barriers to to address major potential risks to the insights into action by: with HSBC to offer improved financing sustainable supply chains. HSBC has dignity of workers in a minimum of terms to suppliers who demonstrate committed to applying its expertise 10 retail supply chains by 2025; avoid Developing a CEO-level guide progress on sustainability. to make progress on a range of one billion metric tons (a gigaton) of designed to support CEOs in setting sustainability goals, including greenhouse gases from the global value a company-wide sustainability providing $100B of sustainable chain by 2030; and enable suppliers agenda, with priority actions for financing by 2025 and sourcing to measure their performance against each department 100% renewable electricity by 2030. the Walmart Sustainability Index. Sharing knowledge across industries Together, we gathered interdisciplinary Supply chain transparency. by highlighting case studies of leaders in London for a workshop and New Economy community companies conducted one-on-one working sessions We can’t manage what we can’t measure. leading the way on sustainable with a range of leading companies to Leading companies set transparent goals supply chains understand relevant obstacles. Participants and systematically identify opportunities Securing commitments and in these conversations included large for supply chain improvement, building tracking the community’s progress multinationals with extensive supply chains, trust with suppliers, customers, and on sustainability improvements such as AB InBev and Syngenta, as well employees. For example, Inditex has as nonprofit organizations such as CDP, identified facilities and manufacturing which supports corporate disclosure of processes by garment and conducts environmental impact. thousands of traceability audits per As part of our efforts to further year, holding suppliers accountable galvanize companies in prioritizing Consistent themes emerged on what it will for breaches (8 suppliers were sustainability, we invite all delegates take to accelerate private sector action: blacklisted last year). to contribute case studies and learnings. Those, in turn, will help Supplier partnerships. shape our forthcoming CEO-level Leadership from the top. Working with suppliers and rewarding guide. Please reach out to When sustainable supply chains are them for improvements can be [email protected] a priority for the C-suite, the entire remarkably effective. Hands-on to set up time with our team. company is empowered to act. For collaboration helps suppliers build example, Walmart’s leadership has made capacity for improvement. For example, responsible sourcing a priority by placing Vodafone launched a Supplier Academy more than 150 Responsible Sourcing to help suppliers assess sustainability associates around the world to assess risk, issues in their own supply chains. monitor supply chain conditions, provide

20 New Economy Solutions Report 2019 21 Solution: Increase transparency in gender reporting

Solution Challenge

In the last few years, we have seen Estimates suggest promoting and Increase meaningful progress on gender equality hiring women to managerial roles transparency in the workplace. More women have at the same rates as men would add risen to the top levels of management, 1 million women and companies are recognizing in the United States alone in gender value of having a diverse leadership to corporate management team. But women “continue to be in the next five years. [6] reporting underrepresented at every level.” [5] How can we better design The challenge is complex, but many of our policies and practices the key obstacles have been identified: Equality is also a massive to build an equitable lower rates of promotion for women business opportunity: achieving gender equality in labor markets workforce and world? from entry-level roles to managerial ones, toxic work culture, and inflexible could add as much as work arrangements. $28 trillion or 26% of global GDP by 2025. [7]

Given these opportunities, how can we ensure that women at all companies are empowered to achieve their full potential?

[5] “McKinsey & Company report, “Women in the Workplace, October 2019 [6] Ibid [7] Ibid

23 Solution: Increase transparency in gender reporting

New Economy insights The Gender-Equality Index (GEI) provides As we look to 2020 and beyond, organizations with a detailed framework we hope to build on this impact by Despite recent advances in our which they can use to track and report increasing the number of companies in knowledge of the gender equality gender data. Companies can use this the New Economy community that adopt challenge, clear and comprehensive data framework internally, and external the Bloomberg Gender-Equality Index on gender disparities in major companies parties such as investors can see the (GEI) Framework. Doing so demonstrates is lacking. For example, standardized data on the Bloomberg Terminal. commitment to transparency around data on how individual companies gender-related data. are fighting gender inequality is not Already, more than 400 companies available for most large companies. with $9 trillion in combined market Bloomberg will provide your company capitalization disclose comprehensive with the standardized reporting Disclosing gender-related data benefits gender-related data using the framework. framework. For public companies, companies in two ways. First, disclosure frameworks will be pre-populated with Over the last few months, the New helps companies address stakeholder any information already disclosed in Economy has increased the Bloomberg demands. These range from reporting public filings. Once submitted, this data Gender-Equality Index’s reach to include mandates and guidelines from will be published on your investment 30 delegate companies. These companies governments, exchanges, and investors, profile on the Bloomberg Terminal. have demonstrated their commitment to demands from asset owners and Companies are encouraged to report to women’s economic empowerment managers to incorporate Environmental, and show their commitment to through transparent data disclosure, Social and Governance (ESG) factors transparency no matter their eligibility meant to advance women in their into their investment decisions. Second, for inclusion in the index. disclosure helps companies understand workplaces and communities. their performance against peers on For any company submitting data for measures of gender equality. their Terminal profile, our Communications The private sector opportunity and Marketing teams provide your firm New Economy Solutions has worked with with a Reporting Seal to promote your the Bloomberg Gender-Equality Index The New Economy community alone commitment to gender equality (GEI) to accelerate standardized, high- employs millions of workers. If we all and transparency. quality data reporting on how companies commit to increasing gender parity, around the world are investing in women we can not only increase opportunities in the workplace, their supply chain, and for women, but improve the workplace Please email [email protected] the communities where they operate. for all workers. to learn more.

24 New Economy Solutions Report 2019 25 Solution: Prepare workers for the New Economy

Solution Challenge Global forces, including automation, digitalization, and artificial intelligence, Work faces what experts have are disrupting the future of work. This Prepare called an “epochal transition.” [8] is not a far-off problem: disruption is already underway. workers for the According to McKinsey Global Institute research, by 2030 up to While the world has tackled job transitions New Economy before, such as during the shift from 375 million workers agriculture to manufacturing in the How can we proactively or about 14% of the global early 20th century in North America reskill and train employees workforce, may need to and Europe, the speed of change is switch job categories to to shape the future of work? accelerating. This faster pace of change sustain gainful employment. creates unique challenges. In previous transitions, which happened over decades, older workers could retire, and younger ones could choose growing industries. In the next ten years, however, tens of millions of workers in the middle of their careers will need to be retrained and redeployed. Companies worldwide are beginning to recognize the magnitude of the problem. 82% of executives at large organizations believe retraining and reskilling must be “at least half” of the answer to addressing skills gaps.[9] 66% of executives see addressing workforce skills gaps as a top 10 priority.

[8] Adapted from McKinsey Global Institute report, “Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages”, December 2017 [9] McKinsey panel survey, November 2017 (n = 1,549), among organizations with >$100 million annual revenue. [10] J. Kluve et al., “Do youth employment programs improve labor market outcomes? A quantitative review,” World Development, Vol. 114 (2019): 237–53.

27 Solution: Prepare workers for the New Economy

Anticipating this challenge, reskilling Several important themes were raised: The private sector opportunity Working with our teams and programs have proliferated over the Generation, you can identify your The reskilling of mid-career workers We invite the New Economy community past decade. Unfortunately, they have company’s workforce challenges, goes beyond training for in-demand to join this effort to shape the future of generally struggled to show positive explore training programs tailored jobs. These workers may face additional work by joining our effort to reach a target outcomes for employers. Only 30% to your company’s talent needs, hurdles to securing employment, of employing 30,000 graduates a year. of youth employment programs are and access high-quality including unconscious age-driven bias successful and many demonstrate candidates. Please reach out to [10] by employers. only marginal benefit. [email protected] How can we start thinking differently While inclusive workplaces benefit all for more information. when it comes to preparing our employees, specialized interventions workers for the future? can be especially helpful for some workers. For example, proactive outreach from younger managers, New Economy insights or onboarding “buddies,” can benefit new employees. In 2019, New Economy Solutions has Reskilling mid-career workers for commenced a collaboration with tech-enabled roles can sometimes Generation, a training and workforce benefit employers more than development organization. Generation recruiting new college graduates. is the largest organization of its kind For example, retention rates are by annual volume, having trained and higher for mid-career workers supported employment for more than than for recent graduates. 30,000 graduates in 12 countries over the last five years, working with more than 3,100 employers. After participating Building on these insights, we have in Generation’s programs, learners tailored our approach to reskilling and see a 2-6x increase in income. [11] we’re working with Generation to serve new networks and actively train and This summer, we hosted a Solution secure employment for new workers. Session in Singapore to convene leading employers from industries at the forefront of reskilling, including healthcare, financial services, and technology.

[11] Statistics from Generation.org

28 New Economy Solutions Report 2019 29 Solution: Accelerate the financial inclusion of underserved entrepreneurs

Solution Challenge supply chains in developing countries, telecommunications players, financial Accelerate the Nearly institutions, service providers, and 2.7 billion people governments. But the benefits to financial inclusion are enormous. financial inclusion including many last-mile farmers, refugees, and other vulnerable Providing the world’s poorest residents of underserved populations in developing with an economic identity can transform countries are excluded from their economic and life prospects. But entrepreneurs the global economy. many other stakeholders would gain from digital financial inclusion. Companies How can service providers harness Unable to prove their income and would access new customers, find it easier technology to expand access and transaction histories, land ownership, to trace goods through supply chains, or other vital facts about their lives and opportunity for small farmers? reduce fraud and abuse, and improve livelihoods, they lack an “economic the efficiency of their operations, among identity.” As a result, they are unable other benefits. Governments would to access important services crucial to gain tax revenue by reducing “leakage” escaping poverty and establishing stable in public spending and tax collection. livelihoods, including financing and Research suggests that widespread insurance. Even those who can access use of digital finance could increase these services often pay exorbitant fees. the GDPs of emerging economies by Unfortunately, efforts to ensure the 6%, or $3.7 trillion, by 2025, creating [12] financial inclusion of these vulnerable up to 95 million jobs. populations tend to be scattered. Given the opportunity, how can we Scalable solutions require a “digital accelerate the digital financial inclusion ecosystem”—a combination of services of the world’s most underserved? that allow those on the margins to both prove their economic identities and access a robust set of tools and services to improve their earning potential. Enabling this ecosystem is a difficult challenge, requiring coordinated efforts from multiple stakeholders, including companies with extensive

[12] McKinsey Global Institute, “How digital finance could boost growth in emerging economies,” September 2016 report.

31 Solution: Accelerate the financial inclusion of underserved entrepreneurs

New Economy insights The private sector opportunity We welcome delegates to help build these innovative ecosystems. In 2019, Bloomberg leveraged the New Our goal for 2020 and beyond is to Please reach out to Economy community to understand recruit additional partners from the New [email protected] and amplify ongoing financial inclusion Economy community to support the to express your interest. initiatives by major companies. ecosystem of services that AB InBev and BanQu are developing. We are especially We are collaborating with AB InBev on focused on recruiting collaborators with their bold and inspiring commitment one or more of the following capabilities: to financially empower 100% of their open-source application development, direct farmers by 2025. By partnering digital payments, network infrastructure, with blockchain platform BanQu, AB farm services that can be contracted and InBev is lifting farmers out of poverty by managed through the blockchain, and increasing transparency and helping them financial literacy training. secure an economic identity. BanQu’s platform uses blockchain technology to record economic transactions, including crop sales, through a secure, immutable, and distributed ledger. This solution empowers smallholder farmers by giving them an economic identity and unlocking opportunity. With the right partners, this can grow into a broader digital ecosystem for the developing world that provides farmers access to vital services, and connects service providers to new customers who can help optimize their offerings. We will be announcing and inviting additional companies to get involved with new collaborations to expand access and opportunity for farmers in 2020 and beyond.

32 New Economy Solutions Report 2019 33 2020 Solutions

We also look forward to working on these important issues with the New Economy community throughout 2020. Please visit bloomberg.com/solutions to connect with our team and get involved:

Advance smart cities

Unlock inclusive trade

Address physical climate risk

Unleash agricultural productivity

Shape next-generation digital public infrastructure

Expand access to secure digital forms of identification

Thanks to our lead collaborators

And to our Knowledge Partner